Digitisation To Enable Accelerated Growth In Africa – KPMG

Digitisation – migration from analogue to digital technology – will help to bridge the digital divide between emerging markets and developed economies, according to global financial services firm, KPMG.

KPMG stressed that as digitisation impacts the telecommunication and broadcasting sectors, enabling growth in both, it would also cause a ripple effect on growth in other sectors.

“In fact, it is estimated that digitisation will bring about a further drop in telecommunications carriage fees, and drive growth in ARPUs (average revenue per users), thereby increasing profitability and allowing content producers to focus on better material,” says Joseph Tegbe, Partner in Management Consulting Advisory, West Africa Lead – Technology, Media and Telecommunications at KPMG Nigeria. Read more

Mobile technology brighten the future for Africa’s rural homes

John Kibet’s home in rural Kenya is not linked to the country’s electricity grid.

The solar panels contain embedded SIM cards that can communicate with M-Kopa’s control centre.

“Each and every customer’s solar energy system is connected to M-Kopanet allowing us to monitor its performance, troubleshoot issues, as well as control its operational state,” says co-founder Nick Hughes, who also led the Vodafone team behind M-Pesa.

“We can disable systems remotely if payments are missed, or reactivate them when customers catch up,” he adds.

But the default rate on payments is just 5%, the company says.

Through the M-Pesa system – “pesa” means money in Swahili – people can pay bills simply by sending a text message to the recipient stating the amount that needs to be paid. The recipient can then redeem the money at an M-Pesa agent.

“M-Pesa is a stand-out example of how technology can solve problems – in this case how to move cash over distances quickly, securely and in an affordable way,” Mr Hughes told the BBC.

“Today, M-Pesa is seven years old, and does hundreds of transactions a second. It has changed the way money moves in Kenya.”

About 25% of Kenya’s gross domestic product is thought to flow through the platform.

Leap-frogging

Mr Kibet is one of a growing number of people in developing economies who have leap-frogged traditional computing technologies and gone straight to mobile for accessing the internet.

According to mobile industry body GSMA, the number of mobile phone subscribers in sub-Saharan Africa – currently more than 250 million – is forecast to rise to nearly 350 million by 2017.

Access to fixed-line phones at home is less than 5% in the region, but almost all households have access to a basic mobile.

And now smartphones are growing fast in popularity, too. They accounted for 67% of mobile sales in Kenya between 2013 and 2014, says Safaricom, and more than 100,000 are being bought each month.

This mobile revolution is presenting a blank canvas for new technologies, says Mr Hughes.

“Perhaps the biggest difference in Africa that I find hugely exciting is the opportunity to build innovative services without tackling the inertia of legacy systems,” he says.

Wireless water

Mobile is also helping provide better, more sustainable water supplies for Africa.

For example, Mobile Water for Development, a project based at the University of Oxford, undertakes a number of studies to try to improve rural access to water through mobile technology.

Projects have included a one-year study into “smart handpumps” – water pumps that can transmit their operational status via embedded mobile technology.

According to some estimates, a third of handpumps in Africa don’t work at any one time.

Data collected from these smart pumps reveal usage patterns that then alert water companies when it looks like a pump isn’t working.

They can then send out engineers quickly to fix the pumps before villagers are forced to resort to dirtier sources of water.

In another example, a water company in Dar es Salaam, Tanzania, teamed up with telecoms firms Vodacom and Zain – later Airtel Money – in 2009 to introduce mobile payment services for water.

Since then, mobile payment services have blossomed in sub-Saharan Africa, with water companies using payments services including M-Pesa, Airtel Money, and MTN Mobile Money.

Ineffective billing and payment collection has been costing the African water industry $500m (£300m) a year, according to the World Bank.

But studies have shown that making payments easier helps reduce corruption and improve revenue and data collection per customer, thereby enabling water companies to invest more in their services and operate them more efficiently.

This is crucial in a continent where reliable supplies of clean drinking water are often hard to come by.

Mobile is helping to spread sustainable technologies throughout Africa, and changing lives for the better. Read more

Mobile phone growth outpacing income growth in many African countries

This article is part of a weeklong series analyzing how mobile technology is affecting politics, business, and well-being.

WASHINGTON, D.C. — From its use in farming to banking, mobile technology is changing many lives in Africa — fast. Nearly two-thirds (65%) of households in 23 countries in sub-Saharan Africa had at least one mobile phone in 2013, with median growth of 27% since 2008 and median annual growth of 5%. But in countries such as Zimbabwe, growth has far outpaced the average, rising from 26% of households in 2008 to 80% in 2013, and 9% annually. Read more

Emojis: The African app company that trumped Apple to launch first black emoticons

Every week, African Start-Up follows entrepreneurs in various countries across the continent to see how they are working to make their business dreams become reality.

(CNN) — As in most aspects of life, timing in business is essential.

About one month ago, following complaints by celebrities like Miley Cyrus and Tahj Mowry over a lack a racial diversity in Apple’s emojis (the cartoon-like icons used to spruce up text messages), a company executive told MTV that the tech giant was working to update its set of characters.

The news quickly had Twitter buzzing as people joined the #EmojiEthnicityUpdate discussions — but that wasn’t the end of the story.

Without wasting any time, a Mauritius-based app company called Oju Africa announced a few hours later that it had already tackled the lack of racial diversity by introducing its own set of Afro emoticons on Google Play Store.

The company said it had been working on the icons since late 2012 and was planning to officially launch them on April 10. Yet, the social media hype after Apple’s response prompted them to speed up their release date — trumping market-leading companies in the process. Read more